Fair Operating Practices Promotion of CSR Procurement

To fulfill our corporate social responsibilities throughout the entire supply chain, including our suppliers, we are conducting a range of initiatives while formulating action principles for procurement departments, as described below.

Action Principles

Employees involved in procurement operations are working to implement CSR procurement in accordance with various rules and internal regulations, such as the Procurement Policy, formulated in July 2017, (global in scope) and the Procurement Compliance Code of Conduct (national in scope).

Procurement Policy
  1. 1Fair and equitable selection of supplier
  2. 2Open opportunity for transactions
  3. 3Establishment of relationship of trust
  4. 4Compliance with laws and regulations, as well as social norms
  5. 5Moderate action

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Selecting and Reevaluating Suppliers

In selecting suppliers related to the production of pharmaceuticals, we first confirm that they do not have any relationship with anti-social forces. We then select suppliers in accordance with supplier selection standards developed in-house, which include such areas as quality assurance, technical capabilities, customer focus (ability to respond flexibly), prices, and management capabilities (continuity). In addition, for existing suppliers we continually implement reevaluation initiatives with consideration for our supplier selection standards.

Establishing a Sustainable Supply Chain

In regard to CSR-related areas in which we wish to work together with suppliers, such as the environment, human rights, and labor, we use a guidebook [PDF: 454KB] prepared by the MCHC Group that covers what the MCHC Group would like to share with suppliers. In this way, we are working to establish and strengthen a sustainable supply chain. In addition, in order to deepen mutual understanding with suppliers, we are utilizing a questionnaire, implementing explanation meetings, and working to facilitate the exchange of opinions.

Training on Laws and Regulations for Procurement

The Company's procurement departments regularly conduct training on the laws and regulations related to procurement. In this way, we are working to maintain a high level of awareness about observing related laws and regulations.

Applicable Main Laws and Regulations
  • Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical Devices (Pharmaceuticals and Medical Devices Act)
  • Act on the Evaluation of Chemical Substances and Regulation of Their Manufacture, etc. (Chemical Substance Control Law)
  • Industrial Safety and Health Act
  • Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Subcontracting Act)
  • Other laws and regulations concerning import and export